Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods. Compound interest differs from simple interest in that simple interest is calculated solely as a percentage of the principal sum.The equation for compound interest is: P = C(1+ r/n)ntWhere: P = future value C = initial deposit r = interest rate (expressed as a fraction: eg. 0.06 for 6%) n = # of times per year interest is compounded t = number of years invested
Related information about compound interest:
- Compound interest - Wikipedia, the free encyclopedia
Compound interest arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This addition ...
- Compound Interest Calculator
This calculator also has links explaining the compound interest formulas with interactive graphs.
- Compound Interest Formula - Math About
Compound interest. Calculate compound interest: compound interest calculator business math excel formula interest interest algebra.
- Compound Interest - Math About
Compound interest is interest that is paid on both the principal and also on any interest from past years. It's often used when someone reinvests any interest they ...
- Compound Interest Calculator - WebMath
Compound Interest Calculator - powered by WebMath.
- Compound Interest Formula
Regular Compound Interest Formula. P = principal amount (the initial amount you borrow or deposit). r = annual rate of interest (as a decimal). t = number of ...
- Compound Interest - Math is Fun
With Compound Interest, you work out the interest for the first period, add it to the total, and then calculate the interest for the next period, and so on ..., like this: ...
- Compound Interest Definition | Investopedia
Interest that accrues on the initial principal and the accumulated interest of a principal deposit, loan or debt. Compounding of interest allows a principal amount ...